Peoples Gas started construction on the company’s 84,433 square-foot, two-story, North Shop service facility at the Peterson-Pulaski Industrial Corridor in the Sauganash neighborhood of Chicago, Illinois.

The city expects to facility will create about 430 jobs in the area. Peoples Gas anticipates completing construction by fourth quarter 2019.

“This significant new investment will transform a vacant lot into an economic engine and bring hundreds of good-paying jobs with it,” Mayor Rahm Emanuel said. “Building a new North Shop will help build a new Chicago, creating the 21st century infrastructure that is the foundation of a 21st century economy.”

Peoples Gas has hired McKissack & McKissack and FH Paschen, which partnered with Epstein, to design and build the new facility. According to city officials, the firms have committed a projected total spend of more than 50 percent with minority-, women- and veteran-owned businesses. They also have committed to hiring Chicago residents for at least 50 percent of the jobs during construction.

“The new North Shop will better serve the needs of our customers and employees while bringing $60 million of new private investment to a predominantly vacant and underutilized site,” Peoples Gas President & CEO Charles Matthews said.

The facility will reduce maintenance costs, improve the efficiency of customer responses, provide safer traffic flow for employees and include large meeting rooms available for public use, officials said. In addition, the building will be constructed to meet City of Chicago sustainability requirements.

“The new North Shop service facility will be a vibrant new addition to the ward,” Alderman Margaret Laurino said. “Sauganash is proud to be its new home, and we look forward to our continued partnership as the construction and move-in take shape.”

“We’re honored to serve the residents of Chicago through our partnership with Peoples Gas,” Roland Schneider, Project Executive, McKissack Paschen JV said. “We take great pride in increasing the quality of life through the investment of infrastructure and workforce development.”